How do people manage multiple accounts?

DougWeller

I read about people having several Santander 123/Flexdirect etc interest bearing accounts, but I don't understand how they do that.

I've got a Halifax main current account and a current account with the Nationwide, and one 123 account. I know what I'm doing transferring money from my main Halifax account to the 123 account but I don't understand multiple interest bearing accounts. Do people have these because they have large incomes? Because I'm retired with an ok pension but not enough to fund several accounts.
Thanks
Doug

ChopperST

There will be many reasons why people hold multiple accounts.

Santander 123 is money for nothing for most people with council tax, gas, electricity bills etc. as the cashback more than makes up for the £2 a month fee. 3% on balances over £3k is also better than most can get in savings.

Halifax will give you £5 for two direct debits if you pay in £750 a month.

Nationwide will give you 5% AER for paying £1k and taking it straight back out the same day.

As to your question do people do it with large incomes I suppose it depends on what you classify as large.

Earning every penny you can on every one you earn would be most people's goal on MSE I expect.

I'm not quite sure I've answered your question as I'm not sure what exactly you're asking TBH.

Imma_Number

Even with no income it can be worth it if you have savings.
Just need to fulfil the various terms.
So as ChopperST says, various DDs on some accounts and the rest is just meeting the required amount paid in each month. Nothing what so ever to stop you taking it straight back out again.

So with 3 accounts you can either shuffle say 1K back and forth to a main account or send the 1K around in a circle leaving it to sit longest in whatever account pays the most on it.

dreaming

I certainly don't have a large income as I took early retirement at the end of August following redundancy. I used my severance to pay off the mortgage and put the maximum allowed for the year into my cash ISA. I started to look at stocks and shares ISA's but decided they weren't for me as I may have to dip into the residue to top up my pension and they were too risky over a short term for me, so I opened up the 123 account for £20k and upgraded my Nationwide Flex account to FlexDirect for £2.5k. My pension gets paid into Nationwide but is not enough for the £1k required so I transfer £500 into Santander, then £250 back to Nationwide thus fulfilling requirements for both accounts. I also have some savings in the Nationwide E-Savings - not the greatest rate of interest but easy to get to for emergencies/treats.
I know some people have far more accounts than this but this is adequate for me right now and easily managed with about 30 minutes (maximum) effort each month.

DougWeller

So it's basically a matter of setting up direct debits to shuttle money back and forth? And that's ok?
Or do you have to do it 'by hand'?
Thanks
Doug

apt

Not by direct debits in most cases. You can do it by standing order, but it is only a couple of minutes a month to do it by internet banking, especially as you usually have to move the monthly interest somewhere anyway to avoid it earning no interest.

ChopperST

Standing orders but with a little monthly monitoring as some banks more SO forwards if your date falls on a non working day and others backwards.

calypso_rhapsody

Yes keep an eye on the actual dates of SOs - if they fall on a weekend you can end up with a problem (you can avoid that by having the money go in one day and out 3 days later if you'd rather not check every month). Also take care if the T&Cs require £x per calendar month or per month from date of opening? Again, if the month-end falls on a weekend you can end up with a problem - just make sure that there's a few days clearance. But if you are canny about it, you can have the money just moving from one account to another to meet the requirements.

Is Lloyds Vantage still paying a good rate - I forget!

innovate

You need £90,500 cash to fully exploit all the current accounts to the limit with the presently available interest deals. If you have less, you only need fewer accounts.

Apart from Nationwide and Yorkshire/Clydesdale Bank, where the deals run for a limited period only, the interest rates are variable, so could be changed at short notice.

Is your Halifax a Reward account? If not, consider making it one if you can meet the pre-reqs . Currently pays £5/mth if you qualify. £60 a month.

What sort of an account do you have at Nationwide? Flexaccount? FlexDirect? FlexPlus?

DougWeller

I meant SO of course, sorry. My Nationwide account is an ordinary account that I fill up from savings accounts.I need to keep something to meet credit card bills which can vary quite a bit, so I might push them to my Santander account. My Halifax account is also a non-interest one. The first question I guess is which will be the best account for my pension income.
The three day gap between in and out seems to make sense.
Interest doesn't get interest?
Doug

ChopperST

The Flexdirect for example only pays interest on up to £2.5k anything over that amount earns 0% so you lose the effect of compounding.